INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION
[2004 Revision Notice Below]
Industrial production rose 0.1 percent in September after having edged down 0.1 percent
in August. The production index was revised up slightly in June and July, but it is now
estimated to have been slightly lower in August than previously reported. Manufacturing output
declined 0.3 percent in September, and mining output dropped 2.3 percent. The recent spate of
hurricanes appears to have had a noticeable restraining effect on production last month. In
particular, output dropped sharply in the oil and gas extraction, chemical materials, and
petroleum refining industries; combined, the September decreases for these industries reduced
the rate of change in total industrial production about 0.3 percentage point. However, the exact
magnitude of the effect of the hurricanes on these industries and on industrial production more
broadly is difficult to determine. Utilities output surged 5.4 percent in September, in part
because of a swing to relatively warm temperatures after unseasonably cool weather in August.
For the third quarter as a whole, total industrial production increased at an annual rate of 2.9
percent, and manufacturing output rose at a 4.4 percent rate. Capacity utilization for total
industry was unchanged in September, at 77.2 percent, a rate 2.3 percentage points above its
year-earlier level but still 3.9 percentage points below its 1972-2003 average.
INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION: SUMMARY
Seasonally adjusted
Industrial production |
1997=100 |
Percent change |
2004 |
2004 |
Sept. '03 to Sept. '04 |
June |
July |
Aug. |
Sept. |
June |
July |
Aug. |
Sept. |
|
|
|
|
|
|
|
|
|
|
Total index |
115.9 |
116.7 |
116.5 |
116.7 |
-.3 |
.7 |
-.1 |
.1 |
4.6 |
Previous estimates |
115.8 |
116.5 |
116.6 |
|
-.4 |
.6 |
.1 |
|
|
|
|
|
|
|
|
|
|
|
|
Major market groups |
|
|
|
|
|
|
|
|
|
Final Products |
111.4 |
112.5 |
112.4 |
112.7 |
-.5 |
1.0 |
-.1 |
.3 |
4.6 |
Consumer goods |
108.3 |
108.6 |
108.9 |
109.2 |
-.9 |
.3 |
.3 |
.3 |
3.0 |
Business equipment |
119.8 |
123.4 |
122.0 |
122.3 |
.6 |
3.0 |
-1.2 |
.3 |
10.0 |
Nonindustrial supplies |
114.9 |
115.4 |
115.1 |
115.5 |
.0 |
.4 |
-.2 |
.4 |
6.2 |
Construction |
106.4 |
107.1 |
107.4 |
107.1 |
-.5 |
.7 |
.3 |
-.4 |
4.7 |
Materials |
120.9 |
121.4 |
121.2 |
121.1 |
-.2 |
.5 |
-.2 |
-.1 |
4.1 |
|
|
|
|
|
|
|
|
|
|
Major industry groups |
|
|
|
|
|
|
|
|
|
Manufacturing (see note below) |
117.7 |
118.8 |
119.0 |
118.7 |
-.1 |
.9 |
.2 |
-.3 |
5.3 |
Previous estimates |
117.7 |
118.7 |
119.3 |
|
-.2 |
.9 |
.5 |
|
|
Mining |
92.0 |
93.3 |
92.6 |
90.4 |
-.7 |
1.4 |
-.9 |
-2.3 |
-3.3 |
Utilities |
114.5 |
112.6 |
110.0 |
115.9 |
-1.3 |
-1.6 |
-2.3 |
5.4 |
5.5 |
Capacity utilization |
Percent of capacity |
Capacity growth Sept. '03 to Sept. '04 |
Average 1972-2003 |
1982 Low |
1988-89 High |
2003 Sept. |
2004 |
June |
July |
Aug. |
Sept. |
|
|
|
|
|
|
|
|
|
|
Total industry |
81.1 |
70.9 |
85.2 |
74.9 |
77.0 |
77.4 |
77.2 |
77.2 |
1.5 |
Previous estimates |
|
|
|
|
76.9 |
77.3 |
77.3 |
|
|
|
|
|
|
|
|
|
|
|
|
Manufacturing (see note below) |
80.0 |
68.7 |
85.6 |
73.6 |
76.0 |
76.6 |
76.6 |
76.3 |
1.5 |
Previous estimates |
|
|
|
|
76.0 |
76.6 |
76.8 |
|
|
Mining |
86.9 |
78.6 |
85.6 |
85.2 |
83.8 |
85.0 |
84.3 |
82.4 |
.0 |
Utilities |
86.9 |
77.6 |
92.8 |
81.8 |
83.6 |
82.1 |
80.2 |
84.5 |
2.1 |
|
|
|
|
|
|
|
|
|
|
Stage-of-process groups |
|
|
|
|
|
|
|
|
|
Crude |
86.3 |
77.2 |
88.5 |
83.8 |
84.5 |
85.7 |
84.9 |
83.0 |
-.2 |
Primary and semifinished |
82.2 |
68.1 |
86.4 |
76.6 |
79.2 |
79.0 |
78.9 |
79.2 |
2.2 |
Finished |
78.2 |
71.3 |
83.2 |
71.2 |
73.2 |
74.2 |
74.1 |
74.1 |
.8 |
r Revised. p Preliminary.
The statistics in this release cover output, capacity, and capacity utilization in the
industrial sector, which the Federal Reserve defines as manufacturing, mining, and electric and
gas utilities. Manufacturing comprises those industries included in the North American Industry
Classification System, or NAICS, manufacturing plus the logging and newspaper, periodical,
book and directory publishing industries that have traditionally been considered manufacturing and included
in the industrial sector.
Market Groups
The output of consumer goods rose 0.3 percent in September and increased at an annual
rate of 0.9 percent in the third quarter. Consumer energy products rose, as an increase in
electricity sales more than offset a reduction in gasoline refining. The output of consumer
non-energy nondurables edged up; gains for foods and tobacco and for clothing partly reversed
their declines earlier in the quarter. In contrast, the production of chemical products and paper
products moved down in September after having increased smartly in July and August. The
production of consumer durables fell 0.3 percent in September as output in all major categories
slipped. Among these categories, the index for automotive products edged down after a sizable
gain in August, and the index for home electronics continued to move down.
The index for business equipment increased 0.3 percent in September after having
declined 1.2 percent in August. For the third quarter as a whole, however, output in this
category rose at an annual rate of 13.4 percent. In September, the production indexes for transit
equipment, information processing equipment, and industrial and other equipment all edged up.
The third-quarter gain in the output of information processing equipment, at 24.4 percent (annual
rate), was the largest quarterly increase in this category since the second quarter of 2000.
The production of defense and space equipment rose 0.6 percent in September and
increased at an annual rate of 12.6 percent in the third quarter. The output of business supplies
moved up 0.6 percent in September, and the output of construction supplies decreased
0.4 percent. The production of materials edged down 0.1 percent; increases in equipment parts
and in energy materials were offset by declines elsewhere.
Industry Groups
The 0.3 percent drop in manufacturing output in September reflected an unchanged level
of production for durables, a 0.5 percent decline in the production of nondurables, and a 0.4
percent drop in non-NAICS manufacturing (logging and publishing). In the third quarter, the
output of durable goods increased at an annual rate of 6.3 percent, and nondurable output rose a
more modest 1.4 percent. Among durables, the production of computers and electronic products
gained 0.7 percent in September, while machinery output advanced 0.3 percent. But the output
of primary metals; fabricated metal products; and electrical equipment, appliances, and
components was little changed, while the output of other major industries fell. Among
nondurables, the most significant declines were in petroleum refining and the production of
chemicals. Other nondurable industries that registered reductions in output last month included
textile and product mills, printing and support, and plastics and rubber products. The overall
factory operating rate decreased 0.3 percentage point in September, to 76.3 percent, a rate 2.7
percentage points above its year-earlier level.
The spurt in output at utilities in September was entirely the result of a jump of 6.7
percent for electric utilities; the output at natural gas utilities contracted 0.8 percent for a second
consecutive month. The drop in mining output was concentrated in the oil and gas extraction
industry and reflects production that was shut in because of the hurricanes in the Gulf of Mexico.
Capacity utilization for industries in the crude stage of processing decreased 1.9
percentage points, to 83.0 percent, in September. The operating rate for industries in the primary
and semifinished stages increased 0.3 percentage point, to 79.2 percent, and the utilization rate
for finished goods producers was unchanged at 74.1 percent.
Revision of Industrial Production and Capacity Utilization
The Federal Reserve Board plans to issue, in late 2004, an annual revision to the index of
industrial production (IP), the related measures of capacity and capacity utilization, and the data
on industrial use of electric power; the date of the revision is subject to the availability of the
comprehensive source data from the Census Bureau's 2002 Economic Census. In addition to
these data, the revised IP indexes will incorporate data from selected editions of the Census
Bureau's 2002 and 2003 Current Industrial Reports. Annual data from the U.S. Geological
Survey regarding metallic and nonmetallic minerals (except fuels) for 2002 and 2003 will also
be introduced. The updating will also include revisions to the monthly indicator for each
industry (either physical product data, production-worker hours, or electric power usage) and
revisions to seasonal factors.
Capacity and capacity utilization will be revised to incorporate preliminary data from the
Census Bureau's 2003 Survey of Plant Capacity, which covers manufacturing, along with new
data on capacity from the U.S. Geological Survey, the U.S. Department of Energy, and other
organizations. The statistics on the industrial use of electric power will incorporate additional
information received from utilities for the past few years and will include available data from the
2002 Economic Census.
Once the revision is published, it will be made available on the Board's web site at
www.federalreserve.gov/releases/G17. The revised data will also be available through the web
site of the Department of Commerce. Further information on these revisions is available from
the Board's Industrial Output Section (telephone 202-452-3197).
G.17 Release Tables:
Ascii | Screen reader | Summary: Industrial Production and Capacity Utilization |
Chart | | Chart 1: Industrial Production, Capacity, and Capacity Utilization | Chart | | Chart 2: Industrial Production and Capacity Utilization | Chart | | Chart 3: Industrial Production and Capacity Utilization, High Technology Industries | Ascii | Screen reader | Table 1:Industrial Production: Market and Industry Groups (percent change) |
Ascii | Screen reader | Table 2:Industrial Production: Special Aggregates and Selected Detail (percent change) |
Ascii | Screen reader | Table 3: Motor Vehicle Assemblies |
Ascii | Screen reader | Table 4: Industrial Production Indexes: Market and Industry Group Summary |
Ascii | Screen reader | Table 5: Industrial Production Indexes: Special Aggregates |
Ascii | Screen reader | Table 6: Diffusion Indexes of Industrial Production |
Ascii | Screen reader | Table 7: Capacity Utilization: Manufacturing, Mining, and Utilities |
Ascii | Screen reader | Table 8: Industrial Capacity: Manufacturing, Mining, and Utilities (percent change) |
Ascii | Screen reader | Table 9: Industrial Production: Gross Value of Products and Nonindustrial Supplies |
Ascii | Screen reader | Table 10: Gross-Value-Weighted Industrial Production: Stage-of-Process Groups |
Ascii | Screen reader | Table 11: Electric Power Use: Manufacturing and Mining |
Ascii | Screen reader | Table 12: Historical Statistics for IP, Capacity, and Utilization: Total Industry |
Ascii | Screen reader | Table 13: Historical Statistics for IP, Capacity, and Utilization: Manufacturing |
Ascii | Screen reader | Table 14: Historical Statistics for IP, Capacity, and Utilization: Total Industry excluding Selected High-Technology Industries |
Ascii | Screen reader | Table 15: Historical Statistics for IP, Capacity, and Utilization: Manufacturing excluding Selected High-Technology Industries |
Release dates | Historical data | Documentation
Current Monthly Release Other formats: ASCII | PDF (144 KB)
Supplemental Monthly Release Other formats: ASCII | PDF (144 KB)
Annual Revision Release Other formats: ASCII | PDF (150 KB)
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